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dc.contributor.authorFöllmi, Retoen_US
dc.contributor.authorWuergler, Tobiasen_US
dc.contributor.authorZweimüller, Josefen_US
dc.date.accessioned2010-08-11T08:53:16Z-
dc.date.available2010-08-11T08:53:16Z-
dc.date.issued2010en_US
dc.identifier.urihttp://hdl.handle.net/10419/37481-
dc.description.abstractWe study a model of endogenous growth where firms invest both in product and process innovations. Product innovations (that open up completely new product lines) satisfy the advanced wants of the rich. Subsequent process innovations (that decrease costs per unit of quality) transform the luxurious products of the rich into conveniences of the poor. A prototypical example for such a product cycle is the automobile. Initially an exclusive product for the very rich, the automobile became affordable to the middle class after the introduction of Ford's Model T, the car that put America on wheels. We show that an egalitarian society creates strong incentives for process innovations (such as the Model T) whereas an unequal society creates strong incentives for product innovations (new luxuries). We show that the inequality-growth relationship depends on which type of innovative activity drives technical progress, analyzing both the characteristics of and the transition to the balanced growth path.en_US
dc.language.isoengen_US
dc.publisherVerein für Socialpolitik Frankfurt a. M.en_US
dc.relation.ispartofseriesBeiträge zur Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie - Session: Technology and Growth B1-V1en_US
dc.subject.jelO30en_US
dc.subject.jelO15en_US
dc.subject.jelD30en_US
dc.subject.ddc330en_US
dc.subject.keywordinequalityen_US
dc.subject.keywordtechnical changeen_US
dc.subject.keywordgrowthen_US
dc.subject.keywordmass productionen_US
dc.subject.keywordproduct innovationsen_US
dc.subject.keywordprocess innovationsen_US
dc.titleThe Macroeconomics of Model Ten_US
dc.typeConference Paperen_US
dc.identifier.ppn655954198-
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
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